Which word describes something that is capable of being applied or is relevant?

The term "applicable" is indeed the correct choice for describing something that is capable of being applied or is relevant in a given context. When something is applicable, it means it is suitable or appropriate to a particular situation, idea, or set of circumstances. This relevance allows for practical use or consideration in whatever scenario is being discussed, such as laws applying to a case or rules being relevant to a game.

The other words do not convey this specific meaning. "Asset" refers to a valuable resource or item, "compassion" relates to a feeling of empathy and care for others, and "exuberant" describes a state of being full of energy and excitement. None of these convey the idea of relevance or applicability that is crucial to understanding the context of the question.